Here’s an easy to use reference showing the current federal tax on assorted commercial tobacco products, the new S-CHIP effects, and the overall percentage increase. The chart helps illustrate the unbalanced taxation schedule for various tobacco products. A quick study will show the discrepency between one form of tobacco and all the rest as being singularily picked for an exhorbitant and especially brutal tax. The RYO tax increase shown is NOT AN APRIL FOOLS JOKE NOR A TYPO!
Exactly why the RYO tobacco industry and it’s consumers are expected to bear the brunt of the S-CHIP’s proposed tax increase has yet to be made clear. Several RYO manufacturers have already announced their intentions to close effective March 31st, 2009. How any remaining companies plan to bear such a dramatic and uneven tax is a mystery. The secretive way in which the bill was passed and it’s effects ingnored by the media leaves many RYO users in the dark. Many won’t realize the effects of the bill until April 1st when attempting to purchase tobacco.
SCHIP Tobacco Tax Rate Increases | RYO Revolution
| Tobacco Product | Current Tax | SCHIP 2007 (Vetoed) |
SCHIP 2009 (New Tax) |
Tax Increase (April 2009) |
% Increase (April 2009) |
|---|---|---|---|---|---|
| Cigarettes | $0.39/pack | $1.00/pack | $1.01/pack | $0.62/pack | 158% |
| RYO Tobacco 1 | $1.10/lb | $8.89/lb | $24.78/lb | $23.68/lb | 2,159% |
| Pipe Tobacco | $1.10/lb | $2.81/lb | $2.83/lb | $1.73/lb | 158% |
| Large Cigars | $0.05 ea (Max) | $3.00 ea (Max) | $0.40 ea (Max) | $0.35 ea (Max) | 722% |
| Small Cigars | $0.04/pack | $1.00/pack | $1.01/pack | $0.97 | 2,653% |
| Chewing Tobacco | $0.195/lb | $0.50/lb | $0.50/lb | $0.31/lb | 158% |
| Snuff | $0.59/lb | $1.50/lb | $1.51/lb | $0.93/lb | 158% |
| “pack” = 20 (cigarettes or small cigars)
“lb” = 1 pound (16 ounces) net weight 1 The New Law amends Roll Your Own Tobacco classification to include Blunt & Cigar Wrappers SCHIP Tax Table data compiled and provided by RYOrevolution.com |
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